Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing
Question:
Larissa Warren started Warren Manufacturing several years ago. Warren manufactures electronic controls for a variety of manufacturing applications. The company is organized as an LLC. The Company is located in Willington NC. The industry is fragmented with few competitors. Warren Manufacturing has a very good reputation in the industry for quality and delivery. Larissa’s background is engineering so her financial skills are limited. As a result the financial information being supplied although accurate is not in financial statement form.
Larissa has hired you to “clean things up” from a financial statement perspective. She has also asked you to prepare and comment on the “cash flows” (operating cash flow, cash flow from assets, to creditors to shareholder) for 2019. She also want for you explain what they mean and impact on company’s performance.
Larissa has provided you the following information, although deemed accurate, is not in a very useable form.
Warren Manufacturing currently pays out 50 percent of net income as dividends.
The effective tax rate is 30%.
You are to prepare the following in good presentation form):
An income statement for 2018 and 2019.
A balance sheet for 2018 and 2019.
Operating cash flow for each year.
Social Statistics for a Diverse Society
ISBN: 978-1483333540
7th edition
Authors: Chava Frankfort-Nachmias, Anna Leon-Guerrero